International Financial Reporting Standards in Australia Essay
Added on -2020-07-22
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Pros and Cons of AustraliaAdopting IFRS whetherAustralia should continue tofollow IFRS
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3MAIN BODY...................................................................................................................................3Meaning of International Financial Reporting Standards...........................................................3Importance of International Financial Reporting Standards for Australia..................................3Pros and Cons of IFRS if adopted by Australia..........................................................................4Whether Australia should continue to follow IFRS....................................................................6CONCLUSION................................................................................................................................6REFERENCES................................................................................................................................7
INTRODUCTIONInternational Financial Reporting Standards which is basic and common fundamentalwhich are commonly used and applied in companies all over the world so that their accountscould be same and comparable across international boundaries. This is also called to as IFRSwhich sets a standard in accountancy of companies across globe so that they are having almostsame books of accounts that are comparable with each other. Alike other countries Australia isalso engaged in supporting and then using International Accounting Standards as from 2002.This will be beneficial for companies of Australia in their cash flow and thus reducing cost ofMNC's in country.MAIN BODYMeaning of International Financial Reporting Standards.In order to set one particular standards of accounting books of accounts of companies allover the world International Accounting Standard Board (IASB) provided one particular globallanguage which they said that would help all companies in recording and reporting of their booksof accounts (Firth and Gounopoulos, 2017). Many national standards of various countries arethere which they all are following so replacing all those standards in all these countries IASB setup IFRS. Thus, forming various accounting recording, collecting and reporting of informationwhich would be related to profits and loss and expenses of companies are all equal making themsame, comparable, reliable and also could be easily understanding for others who areinternational users of books of account. However, all countries of world has adopted thisstandards forming similarity in recording and reporting of books of accounts of companies thatare operating within country and outside. But still US is still not adopted it and they arefollowing their own US GAAP.Importance of International Financial Reporting Standards for Australia.Australia is considered to as one of the initial adopters of IFRS into their accountingstandards from the year 2006 they replaced their Australian GAAP which was their domesticmodular (Phang and Mahzan, 2017). It is important for Australia to use this IFRS which wouldbe giving them more and more access to international capital flow and would also be reducingcost of maintaining books of accounts of MNC companies of country. Both the for and notprofits organization of Australian economy are been using Australian Accounting Standard
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